Pakistan Water and Power Development Authority (WAPDA) clarified a news item, appearing in a section of the media, regarding the increase in the cost of Neelum Jhelum Hydropower Project (NJHP).
The WAPDA spokesperson said the 969 MW NJHP was due to be created in 2016 with added safety parameters in wake of the 2005 earthquake. This includes the cost of the two Tunnel Boring Machines imported from Germany.
He said the initial project cost was based on the pre-earthquake design. The cost of civil works had subsequently increased from Rs 41.03 billion to Rs 130.85 billion. The depreciation of the value of the rupee with respect to the US dollar since 2006 has increased the cost by Rs 32.57 billion. The Interest During Completion (IDC) has increased from Rs 29 billion to Rs 58 billion. Also, the cost of security arrangements, not previously accounted, to secure foreigners, will be Rs 1.2 billion. The land acquisition, compensation of houses and environmental damage mitigation cost has increased from Rs 770 million to Rs 4.9 billion due to the AJK governments demand. The project is almost 27 percent complete.
